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Moody's revises outlook on Teva to negative

Moody's affirmed Teva Pharmaceutical Industries Ltd.'s Baa2 issuer rating and changed the ratings outlook to negative from stable.

The outlook change is based on the U.S. District Court for the District of Delaware's rejection of the company's patent infringement claims against the generic versions of its drug Copaxone.

Moody's believes the company will not be able to reduce leverage as there is an increasing risk of a Copaxone generic launch in 2017 after the court ruling.

The Baa2 rating takes into account the company's scale, diversity and its status as the largest generic drug company. The rating agency said the rating is also supported by the company's strong and stable cash flow.

Factors constraining the rating include Teva's high financial leverage after the 2016 Allergan generics acquisition, integration risk of Actavis generics and the company's profit concentration in Copaxone.